TN faces stiff competition from other states: Govt

On the export front, TN is being challenged by Bangladesh and Vietnam who have taken advantage of the corona outbreak in China to lure major manufacturers, said Chief Secretary K Shanmugam.”Industries must also make the best use of the golden opportunities presented by the fast-changing global environment. For instance, the challenges China faces today due to the outbreak of coronavirus and trade war with the US, can be a good opportunity for us,” he said.

Elaborating on the intensity of the competition, Shanmugam said, “In 2000, Indian apparel industry accounted for 3 pc share in the world market as opposed to Bangladesh’s 2.6 pc. But by 2019, India’s share increased by 1.1 pc while that of Bangladesh nearly doubled.’

Continuous improvement is no longer a concern, but a mandate for the industry. “Becoming competitive in the domestic market by way of higher import duties is not a sustainable strategy in the long term. It not only incentivises inefficiency, but also hurts export-related industry,” he said.

N Muruganandam, Principal Secretary, Industries Department, said, “Although TN has a diversified manufacturing foundation and we lead in sectors such as automobile, electronics and leather we face severe competition from different states, especially Haryana and Chhattisgarh, to attract investment.”